Housing Recovery: Housing Starts at 4-Year High

Starts rose 3.6 percent to a 894,000 annual rate, the fastest since July 2008 and exceeding all estimates in a Bloomberg survey, Commerce Department figures showed today in Washington. The median estimate of 82 economists called for starts to fall to a 840,000 pace. Building permits, a proxy for future construction, eased after surging the previous month.

“Housing is absolutely going in the right direction,” said Harm Bandholz, chief U.S. economist at UniCredit Group in New York, who projected 870,000 starts at an annual rate. “Excess supply has been wound down and there’s a steady increase in demand. That’s good for construction.”

U.S. banks that have been earning record profits from home loans are adding or transferring thousands of staff to catch up with demand for refinancing after shortages blocked homeowners from getting lower rates.

Michigan isn't average, but the supply here is anything but depleted. My husband and I can spot abandoned homes before they're listed.

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"Every great new thought was opposed. Every great new invention was denounced. The first motor was considered foolish. The airplane was considered impossible. The power loom was considered vicious. Anesthesia was considered sinful. But the men of unborrowed vision went ahead. They fought, they suffered and they paid. But they won."

Shame - you guys have the best summer weather the world has ever seen.

Indeed. If I had more money, I'd buy more homes. Every week I see one for around $50,000 that I would love to add to a portfolio.

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"Every great new thought was opposed. Every great new invention was denounced. The first motor was considered foolish. The airplane was considered impossible. The power loom was considered vicious. Anesthesia was considered sinful. But the men of unborrowed vision went ahead. They fought, they suffered and they paid. But they won."

U.S. banks that have been earning record profits from home loans are adding or transferring thousands of staff to catch up with demand for refinancing after shortages blocked homeowners from getting lower rates.

This time is different! Certainly, there is no chance that a fed induced housing bubble will result in tears!! I guess I am feeding the troll, but someone needs to respond to your nonsense. Seriously, this is the third or fourth thread you have posted without once mentioning the federal reserve or falsified government economic numbers. This is a full blown ponzi at work. Don't get caught on the wrong side, when the ponzi reverses itself.

And what is the Federal Reserve going to do with all of the mortgages they are buying from JP Sachs with QE-Infinity money?

Twitter: B4Liberty@USAB4L"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
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They may just hold them until the economy "recovers", which would be a long time. They could turn right around and sell them back to JP Sachs for pennies on the dollar. The last, and least likely scenario is that they could sell them at local auctions to the general public.

Any others?

Twitter: B4Liberty@USAB4L"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
"Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
"Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
"Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

@angelatc Smart move. So much depressed real estate out there despite cap rates kicking ass. I like the way you see this as an opportunity; rents are high and money is cheap!

@oyarde Investment banking and sales and trading jobs are not mortgage origination jobs.

@jclay2 Don't be so negative. It's bad for your blood pressure. Nothing but good to say about current fed policy. Never has it been easier to make a killing. Sometimes you gotta play the game. It's not too late to swap your bullion for cash flowing real estate.

@Brian4liberty Bernanke is a smart dude. I'm sure he'll hang on to those mortgages and enjoy the ride.

Fact is that the current batch of home buyers is coming from the best part of the pool; they're super creditworthy people who are putting down big money on down payments. Hard to call it a bubble! This.is all about credit quality and recovery, not lending standards or risky monetary policy.

They may just hold them until the economy "recovers", which would be a long time. They could turn right around and sell them back to JP Sachs for pennies on the dollar. The last, and least likely scenario is that they could sell them at local auctions to the general public.

Any others?

I do not see any move but to hold them , but I doubt they realize how long that will require ...

They may just hold them until the economy "recovers", which would be a long time. They could turn right around and sell them back to JP Sachs for pennies on the dollar. The last, and least likely scenario is that they could sell them at local auctions to the general public.

Twitter: B4Liberty@USAB4L"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
"Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
"Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
"Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

IIRC, the proposal was more of a streamlining and expansion of the process.

Twitter: B4Liberty@USAB4L"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
"Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
"Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
"Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

A separate report today from the Labor Department showed that payrolls increased in 35 states in October, while the unemployment rate dropped in 37, showing much of the job market is gaining traction.

California led the nation with a 45,800 advance in employment, followed by Texas with 36,600 more jobs. The jobless rate dropped the most in South Carolina, Alaska and Wisconsin.

Housing starts are the latest in a batch of data showing a pickup in momentum. An index of homebuilder sentiment rose to a six-year high this month, and sales of existing homes were stronger than forecast in October. Residential construction added 0.3 percentage point to third-quarter economic growth of 2 percent.

Economists at Barclays Plc said in an e-mail that they raised their tracking estimate of the increase in fourth-quarter gross domestic product to 2.2 percent from 2 percent after today’s report.

I suspect that the Fed may hold onto their securities until they mature. The average time a mortgage is kept by a borrower is about ten years (that includes loans refinanced as well as those which get paid off). That is what they have been doing with their Treasuries.

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